Study Shows Marijuana Tax Will Not Impact Budget Gap
KREX News Room
DENVER, Colo.- A recent Colorado State University study shows that state tax revenue from recreational marijuana may not have as big of an impact on the state as initially expected.
The study, put together by the Colorado Futures Center at CSU, estimates the adult recreational marijuana market in Colorado during the 2014-15 fiscal year will be $605.7 million.
The proposed Amendment 64 tax measures would result in $130.1 million in state tax revenue.
While that amount seems like a lot, officials with the Colorado Futures Center say it won't make a significant impact on the state's long-term structural budget gap.
"Medical marijuana's bringing in $130 million in the first year, but then it'll start stabalizing or declining revenue," said Phyllis Resnick of the Colorado Futures Center. "That's not a significant contributor to closing a gap that could be over $3 billion."
The Center estimates the state's structural budget gap will increase to approximately $3 billion by the year 2025.
In addition, the tax proposal would only produce $20 million from the excise tax to be used for school construction, as opposed to the initial goal of $40 million.
The proposed excise tax would be 15% of the wholesale value of marijuana.
A 15 percent sales tax on the retail value, and the state's 2.9% sales tax to marijuana are also proposed with Amendment 64.